Energy price cap forecast to fall by £166

This would represent a drop of nine per cent when compared to the cap figure of £1,849 seen in April.

Looking ahead, the energy market analyst is currently forecasting a very slight fall in the price cap in October, before falling again in January 2026.

This drop has been driven by a mix of geopolitical and market developments and the impact of above-average temperatures, reducing demand expectations and easing pressure on short-term prices.

Dr Craig Lowrey, principal consultant at Cornwall Insight, however, said: "While a fall in bills will always be welcomed by households, we mustn’t get ahead of ourselves. We have all seen markets go up as fast as they go down, and the very fact the market dropped so quickly shows how vulnerable it is to geopolitical and market shifts.

"It would be easy to conclude the fall in the market was due to the United States tariffs, but the reality is that the interactions within and across the energy market are complex – from energy storage requirements in Europe, to warmer weather, to global trade issues – and contribute to the volatility we have seen in recent weeks.

"There is unfortunately no guarantee that any fall in prices will be sustained, and there is always the risk of the market rebounding. The only real way to protect households from this constant cycle of instability and insecurity is to reduce our dependence on international wholesale markets.

"That means continuing to focus on growing low-carbon energy generation here in Great Britain and building a more secure, more sustainable energy future."